Yes, I know, you just saw this photo in my last post. But, bear with me here.
In 1980 we bought the house from whose living room window I took this picture. We paid $72,500 for it with an 11% assumable mortgage for which we were most grateful because most home loans were settling around the 18 to 20 percent rate at the time. It is a small tract house, about 1400 square feet on a 6000 square foot lot. Two car garage, step down family room with fireplace, 3 bedrooms, 2 baths. It has served us well, and continues to do so.
Fast forward to 2005 when the real estate market was going crazy and people were refinancing and taking money from their homes. We never did that but by then we had refinanced our loan down to about 7 percent and had it paid for. The house across the street, in that first photo above, on the left, sold for $230,000. We could hardly believe it. For one thing, it’s smaller (about 1200 square feet) and has only a living room, no family room. Then the market crumbled. The new owners lost the home because they were unable to refinance their loan, and a nice young man picked it up from the bank for $129,000.
Now, at the end of 2013, the nice young man put the house up for sale and sold it for $155,000. Maybe we are seeing a turn-around to the housing market. I kept thinking, with the way real estate was going, that we might have to sell ours for about the same that we paid for it, way back in 1980.